In a bid to spark development in low-income and under-served communities, the U.S. Department of the Treasury announced on Wednesday that it will award $3.5 billion in tax credits to several organizations. The New Markets Tax Credit will be distributed among 85 organizations that will channel the credits through 28 states and Washington, D.C. The Treasury Depatment’s Community Development Financial Institutions Fund (CDFI) hopes this credit will assist in President Barack Obama’s commitment to spur economic growth across the United States. From the press release: The New Markets Tax Credit addresses one of the most significant obstacles to economic development that low-income communities face: a lack of access to patient, private investment capital,” said Treasury Assistant Secretary for Financial Institutions Cyrus Amir-Mokri. The $31 billion worth of tax credits awarded in past years have gone ...
